Though there was an incredible amount of economic prosperity in America during the 1920’s, the “Roaring Twenties” came to end with the start of The Great Depression. The Great Depression began with the Wall Street Crash in October of 1929, but there were many other economic factors before this that led to America’s fall from grace. These factors were individual financial troubles, a slowdown in spending, trouble for farmers, and stock market speculation. Installment plans and buying on credit caused peoples’ debt to skyrocket. The economic prosperity of the 1920’s led many businesses to overproduce products, this overproduction and debt triggered the slowdown in spending. Next drought and over cultivation led to the Dust Bowl. The Dust Bowl caused many farmers to lose their crops and not be able to pay back loans. Lastly over speculation and buying on margin caused people to invest and lose their life savings in the Stock Market.
President Hoover preferred a hands off approach and called on businesses to take voluntary action. This voluntary action and his few attempts at aid didn’t work and the country continued to spiral out of control. Because of the little contribution and aid attempts by Hoover, his name became synonymous with the bad times. Hoovervilles were make shift towns made out of scraps by the poor and homeless, Hoover flags were empty pockets, and Hoover blankets were newspapers. During this time, millions of Americans lost their jobs, life savings, and were living in poverty. The worst part is that the American unemployment rate began its climb that would eventually reach in its peak of 24.9% in 1933.
The Election of 1932 was an opportunity for change and a new beginning in America. The apparent neglect by President Hoover and Roosevelt’s campaign slogan of, “happy days are here again,” led to Roosevelt winning the election. Roosevelt preferred a more hands on approach to things. The first thing Roosevelt did as president was address the visible problems in America and offer his recovery idea, the New Deal. The New Deal was a series of economic programs created by Roosevelt that focused on the Relief, Recovery, and Reform of the American economy. Some programs of the New Deal were the Civilian Conservation Corps, Tennessee Valley Authority, Civil Works Administration, Social Security Act, National Recovery Act, and Federal Housing Administration. Though some these programs weren’t fair to all Americans, they were designed with the intention of putting Americans back to work, fixing industries, aiding the needy, and building the American economy back up.
I believe that the Great Depression was one of the darkest times in American history, but it is still important and must be learned from. The quote by George Santayana, “those who cannot remember the past are condemned to repeat it,” is extremely relevant and has definitely helped us in the world today. Because of the depression, America has been able to adapt and has made law and regulations that will never allow a situation like this to happen again. Some programs from the New Deal, like Social Security, Tennessee Valley Authority, and the Federal Deposit Insurance Corporation, were so successful at addressing their problem, they are still around today. Finally America’s fight to get through the depression and perseverance to recover is truly inspiring and proves how strong America is.
Work Cited
Web. 30 Mar. 2012. <http://www.bilerico.com/2008/12/78319-004-545F8CDD.jpg>.
Web. 30 Mar. 2012. <http://iws.collin.edu/kwilkison/Online1302home/20th%20Century/HooverTruck.jpg>.
"The Great Depression." Welcome to English « Department of English, College of LAS, University of Illinois. Web. 30 Mar. 2012. <http://www.english.illinois.edu/maps/depression/depression.htm>.
"The New Deal." United States American History. Web. 30 Mar. 2012. <http://www.u-s-history.com/pages/h1851.html>.
Class Discussion
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